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12 Cards in this Set
- Front
- Back
ORC |
Operations, Reporting, Compliance |
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CRIME |
Control environment Risk assessment Information & communication Monitoring (Existing) control activities Applies to all ORC objectives |
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Control Environment |
"C" of CRIME Tone at the top 5 principles are EBOCA |
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EBOCA |
The 5 principles of CRIME: Ethics & integrity (commitment to) Board Independence and oversight Organizational structure Commitment to competence Accountability |
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SAFR |
4 principles for "R" in CRIME: Specify objectives Identify and Assess risks Consider potential for Fraud Identify and analyze Risks |
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SAFR |
4 principles for "R" in CRIME: Specify objectives Identify and Assess risks Consider potential for Fraud Identify and analyze Risks |
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CAPM Model |
One of three methods of computing the cost of retained earnings |
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CAPM Formula |
Cost of R/E = Risk-free rate + Risk premium = Risk-free rate + [Beta x (Market return - Risk-free rate)] |
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Quick (acid) Test |
Cash + marketable securities + receivables / CL |
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Reorder Point (inventory) |
The level at which a company should reorder or manufacture inventory. Formula: Reorder point = safety stock + (lead time x sales during lead time) |
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Lower of Cost or Market |
Used for LIFO. Middle value of replacement cost, market celling, market floor. Replacement cost: Given Celling: net selling price less costs to sell Floor: ceiling less the normal profit margin |
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APR of quick payment discount (formula) |
APR = (360/Pay Period - Discount Period) x (Discount%/100-Discount%) Expensive if you turn down discount from vendor or offer to customer B2-37 |